Money & Banking

PNB Housing Finance raises $75 million

Our Bureau New Delhi | Updated on August 06, 2019 Published on August 06, 2019

PNB Housing Finance (PNBHFL) has raised $75 million external commercial borrowing (ECB) from Sumitomo Mitsui Banking Corporation (SMBC), Singapore.

The ECB is under the RBI’s automatic route of approval, and the proceeds will be used by the company as per the applicable guidelines of the central bank.

Second ECB borrowing

Sanjaya Gupta, Managing Director, PNBHFL, said this is the second ECB borrowing by the company in the current financial year.

This facility will not only augment PNB Housing’s liquidity but will also further balance the company’s long-term asset-liability mismatch (ALM) position, he said.

Gupta said the landed cost of the fully-hedged facility has been much lower than the present domestic pricing for a similar tenure.

Kapish Jain, Chief Financial Officer, PNHFL, told BusinessLine that the ECB from SMBC is for a tenure of three years, and the rate at which it has been secured is 50 basis points lower than the domestic rate.

The RBI has allowed PNBHFL to borrow ECB up to $750 million annually under the automatic route

Published on August 06, 2019

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.